Embezzlement not uncommon in medical practices

(HealthDay)—Embezzlement occurs frequently in medical practices and steps should be taken to prevent it, according to an article published in Medical Economics.

Physician practices suffer from some of the highest rates of money mishandling among service industries. During the course of their professional career, three out of four providers will suffer embezzlement.

Embezzlement can result from employees creating fake companies, stealing petty cash, giving themselves bonuses or raises, overstating hours worked, using credit cards for personal expenses, and writing checks. In order to prevent embezzlement, practices should conduct detailed background checks and drug testing on all employees; this should include a detailed credit check. Staff should be informed that the company takes a zero-tolerance policy on theft and that all thefts will be reported to law enforcement. All bills/envelopes should be provided to the practice's owners unopened. Cash co-payments should be monitored, and cash reviewed daily. Employees should not be allowed to take work home. Employees should be mandated vacation offsite in order for bookkeeping to be reviewed. Bookkeeping, accounting, and all financial duties should be separated. Red flags can include having a sudden flux of cash and trying to prevent other employees from handling money.

"Employee embezzlement happens frequently in medicine, especially in small practices," according to the article. "However, there are a lot of steps practices can take to prevent it from occurring in the first place."

Citation:
Embezzlement not uncommon in medical practices (2018, July 24)
retrieved 21 March 2019
from https://medicalxpress.com/news/2018-07-embezzlement-uncommon-medical.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.

E-mail the story

Embezzlement not uncommon in medical practices

Note

Your email address is used only to let the recipient know who sent the email. Neither your address nor the recipient's address will be used for any other purpose.
The information you enter will appear in your e-mail message and is not retained by Medical Xpress in any form.

Your message

Newsletter sign up

Get weekly and/or daily updates delivered to your inbox.
You can unsubscribe at any time and we'll never share your details to third parties.

Your Privacy

This site uses cookies to assist with navigation, analyse your use of our services, and provide content from third parties.
By using our site, you acknowledge that you have read and understand our Privacy Policy
and Terms of Use.